Term
Multiple regression model 

Definition
Using more than one explanatory variable to predict the value of a response variable 


Term
Multiple regression model = 

Definition
yi = B0 + B1x1i + B2x2i + … + Bkxki + ei 


Term

Definition
Shows the linear correlation between each pair of variables under consideration in a multiple regression model 


Term

Definition
A relationship that exists between two explanatory variables if they have a high linear correlation 


Term

Definition
The effect of x1 on the value of the response variable does not depend on the value of x2 


Term
Multiple regression, F0 = 

Definition


Term
Multiple regression, F0 using R^2 = 

Definition
R^2/(1R^2) x [(nk+1)/k] where k is the number of explanatory variables 


Term
Decision rule for hypothesis testing, multiple regression 

Definition
If P < alpha, then reject the null 


Term
1. Guidelines in developing a multiple regression model 

Definition
Correlation matrix to identify explanatory variables that have a high correlation with the response variable 


Term
2. Guidelines in developing a multiple regression model 

Definition
Use all explanatory variables that have been identified by the researcher 


Term
3. Guidelines in developing a multiple regression model 

Definition
Run regressions, one by one removing variables with small tstatistics and high pvalues 


Term
4. Guidelines in developing a multiple regression model 

Definition
Repeat step 3 until all slope coefficients are significantly different from 0 


Term
5. Guidelines in developing a multiple regression model 

Definition
Draw residual plots to see if the model is appropriate 

